Appliance Rebates

Smart Thermostat – Up to $75 Rebate

Get a rebate up to $75 when you purchase a qualifying ENERGY STAR® certified smart thermostat.

Submit an online application for the Smart Thermostat rebate.

Hybrid Heat Pump Water Heater – Instant Rebate

Qualifying models that hold 55 gallons or less must have an energy factor of 2.0 or higher, while units larger than 55 gallons must have an energy factor of 2.2 or higher.

Multiple Ways to Get Your Rebate:

  • Contact a participating contractor specially trained on installing electric hybrid heat pump water heaters
  • Purchase your qualifying heat pump water heater directly from any retailer and fill out the rebate application
  • Get an instant rebate online or in stores

Submit an online application for the Hybrid Heat Pump Water Heater rebate.

Inflation Reduction Act

In August 2022, the federal government passed the Inflation Reduction Act (IRA), which allocated more than $369 billion over 10 years to several energy efficiency initiatives. Wondering how you can take advantage of these tax credits?

With SMECO’s Appliance Rebates Program, you’re eligible for an $800 instant rebate on a new qualifying heat pump water heater. Plus, a heat pump water heater is super energy-efficient and will help you save money over its lifetime. Combine that with Inflation Reduction Act federal tax credits of 30% off of the cost of the heat pump water heater (up to $2,000) and the savings will continue to pile up.

Disclaimer: SMECO is not a qualified tax consultant. This information is not intended as personal tax advice. Please contact a tax professional or CPA to confirm details specific to your qualifications and eligibility.

Here’s How It Works

Shop at one of our participating retailers:

Lowe’s (Heat Pump Water Heaters)

  • 2525 Crain Highway, Waldorf
  • 300 Rosewick Road, La Plata
  • 45075 Worth Avenue, California

The Home Depot (Smart Thermostats and Heat Pump Water Heaters)

  • 12050 Jefferson Farm Place, Waldorf

Look for these signs in the store, near smart thermostats and heat pump water heaters.

$75 instant rebate ENERGY STAR certified smart thermostats sign
$500 instant rebate ENERGY STAR certified heat pump water heater sign

Then follow these simple steps on the signs:

There are many other ENERGY STAR certified products and appliances that help you save energy and money. Check out the Select ENERGY STAR Appliances page for details.

If you purchase your appliance online, you must pay the Maryland Sales and Use Tax to be eligible to receive your rebate. If the retailer did not include sales tax on the transaction, you can go to the Comptroller of Maryland website for more information.

Hybrid Heat Pump Water Heaters

Energy Star Day Heat Pump Water Heater Image

What Is a Hybrid Heat Pump Water Heater?

A hybrid heat pump water heater works like a refrigerator but in reverse.

  • While a refrigerator removes heat from an enclosed box and releases it to the surrounding air, a hybrid heat pump water heater captures heat from the surrounding air and then transfers it to water in an enclosed tank
  • It then blows out the cooler air
  • Because it moves heat from one place to another instead of generating heat directly, it is a much more efficient way to heat water

Why Choose an ENERGY STAR® Certified Hybrid Heat Pump Water Heater?

  • Water heating is the second-largest energy expense in your home behind heating and cooling, accounting for approximately 14% to 18% of your utility costs
  • Hybrid heat pump water heaters can cost less than half as much to operate compared to traditional water heaters
  • Not only do they heat water, but they also cool and dehumidify the space around them
  • Additionally, hybrid heat pump water heaters that are ENERGY STAR® certified are independently tested to ensure that they meet a high level of quality

How Much Can I Save?

  • On average a family of 4 can save around $3,500 over the lifetime of the unit
  • Don’t wait for your old water heater to break! Replace it now with an energy-efficient hybrid heat pump water heater and take advantage of SMECO’s instant rebates

Installation Considerations

  • Work with one of our participating contractors, which you can find further down this page
  • Participating contractors attend training on how to properly install hybrid heat pump water heaters to ensure that your unit operates as efficiently as possible

Installation Location Questions

To avoid placement and spacing issues with your new hybrid heat pump water heater, make sure you can answer “Yes” to all the following questions before purchasing one.

  • Is the location in an unoccupied space where cooling and noise will not be an issue?
  • Does the location offer more than 1,000 cubic feet of surrounding air (that is, approximately the space of a 12-foot by 12-foot room)? (Your hybrid heat pump water heater will not be as efficient if placed in a closet—even one with louvered doors. Your unit needs adequate clearance around air entry and discharge)
  • Does the location offer sufficient height to install? (Hybrid heat pump water heaters are usually taller than traditional water heaters to accommodate the heat pump)
  • Can the location accommodate, or does it already have, a condensate drain or pump?
  • Is air temperature consistently above the freezing range (32°F)? (Hybrid heat pump water heaters do not operate in freezing temperatures like outdoors or in garages during winter in northern climates)
  • Does the air temperature remain between 40°F to 90°F year-round? (An ideal spot would be near a furnace in a basement that is warm all winter)

Source: ENERGY STAR®

Finding a Participating Contractor

Get an instant rebate on select ENERGY STAR® certified hybrid heat pump water heaters. Qualifying models that hold 55 gallons or less must have an energy factor of 2.0 or higher, while units larger than 55 gallons must have an energy factor of 2.2 or higher.

Equipment Tank Size Energy Factor
ENERGY STAR certified Hybrid Heat Pump Water Heater ≤ 55 gallons ≥ 2.2
ENERGY STAR certified Hybrid Heat Pump Water Heater > 55 gallons ≥ 2.2

How to Participate

To get your hybrid heat pump water heater rebate through a participating contractor, follow the steps below:

Participating Contractors

Belair Engineering

Loves Heating & Air, Inc.

Boothe’s Heating, Air & Plumbing LLC

McCrea Services of MD

CroppMetcalfe

Modern Aire LLC

Hunt Plumbing, Heating, and Air Conditioning LLC

SJ Johnson Inc

Eligibility for Hybrid Heat Pump Water Heater Rebates

  • Rebates are available to all eligible SMECO residential customers, regardless of electric supplier. Limit one certified hybrid heat pump water heater rebate per SMECO household, on purchases made beginning May 4, 2015, or while funds last.
  • ENERGY STAR® certified hybrid heat pump water heaters 55 gallons and under must have an Energy Factor of 2.0 or above. ENERGY STAR® certified hybrid heat pump water heaters over 55 gallons must have an Energy Factor of 2.2 or above.
  • Customer’s home must be a separately metered single-family residence (either a detached or attached unit).*
  • Customers can receive a rebate one of two ways:
    • Shop at a participating retailer to apply for an instant rebate coupon for immediate savings
    • Work with a participating contractor to install your equipment. The participating contractor will then submit the necessary documentation on behalf of the customer
  • To be processed, rebate applications submitted by a participating contractor must be accompanied by a signed Customer Verification Form and an invoice for the completed work that includes:
    • Full name of the SMECO account holder
    • Premise location where the work was completed
    • Itemized invoice
    • Service date
    • Complete cost of the work performed
    • Model and serial number of equipment installed

*Attached units are defined as duplexes, condominiums or townhouses that have their own water heaters. Multifamily residential water heaters are not eligible. Customers with individually-metered water heaters are eligible.

EmPower Maryland logo

EmPOWER Maryland programs are funded by a charge on your energy bill. EmPOWER programs can help you reduce your energy consumption and save you money. Learn more about EmPOWER and how you can participate.